That's because they want their money back so they can lend it out
again at a higher interest rate.
Not exact matches
NEW YORK, May 1 - The dollar broke into positive territory for the year and U.S. bond yields inched
higher again on Tuesday as the recent rise in oil prices fueled expectations the Federal Reserve could flag more
interest rate hikes
at its policy meeting this week.
But
at one point, the stock market started to rise
again (following the dot - com crash),
interest rates started to rise and those adjustable -
rate mortgages started to refinance
at higher rates.
NEW YORK The dollar broke into positive territory for the year and U.S. bond yields inched
higher again on Tuesday as the recent rise in oil prices fuelled expectations the Federal Reserve could flag more
interest rate hikes
at its policy meeting this week.
US
interest rates are
higher again this week... short
rates are
at 10 year
highs (2.45 % on the 2 year) while the 10 year Treasury yield is 2.94 %... very close to 5 year
highs.
However, do bear in mind that though a fixed
interest brings in an element of certainty in your monthly payout (as EMI) such home loans are
at least 1 - 2.5 %
higher than a floating
rate home loan and are on a fixed
rate only for a tenure of 3 - 5 years (after which moves to floating
rate again).
So, we then look
at all of their debt, we prioritize the debt,
again looking
at the
highest interest rate that they're being charged on the debt.
Stronger global equity markets contributed to the weakness in the Dollar early in the trading session as traders once
again increased demand for more risky assets after reassessing U.S. economic data and the odds of an
interest rate increase by the Federal Reserve.This morning, traders drove equities
higher after taking a look
at the U.S. em...
So when it's «safe to buy
again,» a flood of new money comes in (to get the
higher yields), which enables the fund to buy even more new bonds
at the currently
higher interest rates.
Also, making a 5 percent down payment might mean a
higher interest rate than putting 20 percent down,
again because more money is
at stake relative to the value of the home.